How Do Cryptocurrencies May Effect On Traditional Financial System And Goverments?

Bitcoin was created as a method of bypassing traditional financial institutions in the electronic payments processing. It also replaced the abstract concept of trust with the need for cryptographic evidence of a transaction.

When the cryptocurrency popularity and demand became impossible to ignore, central banks and other agencies that provide for the implementation of a unified financial policy began to point to a number of specific threats that, in their opinion, these electronic payment systems held.

Perhaps the main concern of all governments is the possibility of using cryptocurrency for money laundering, terrorist financing and other illegal operations. Thanks to anonymity of cryptocurrency payments are used at various stages of drug proceeds, with the legalization of the obtained criminal income and the distribution of money between the criminal groups.

Moreover, the criminal world was enthusiastic about the possibility of cryptocurrency remittances, which further complicated the work of law enforcement agencies in identifying crimes and collecting evidence on the facts of the funds transfers. To counteract the criminal use of cryptocurrency conducted at the interstate level quite actively.

Decentralized nature of cryptocurrency is less of a threat, but for the state it looks much more serious: if the cryptocurrency will gain a certain weight, or rather capitalization, its rate will significantly affect the economy of the country. Potentially, this could undermine the sovereignty and economic independence of goverment.

However it is necessary to pay attention that the majority of roguish schemes meets in ICO. You shouldn't forget about the largest in Vietnam ICO-scam, Modern Tech, which leaders have stolen more than $660 million. Therefore the next way of regulators work becomes rights protection of investors from purchases of scam-tokens. Tthe world regulators of the securities market issued their recommendations on this issue. However, it is generally known that the main "sanitary officer" is the US Securities and Exchange Commission (SEC), which has already taken up arms against a number of scam projects. The latest high-profile example is Centra project, whose founders have already taken into custody.

Do you remember how it was with MMM - for profit all the joyful went to the pyramid, and for compensation of the harm evil - to the state: "why not saved"? Cryptocurrency is a high-risk asset with high volatility, so that their use as a means of payment and accumulation leads to potential loss of funds by ordinary citizens, which in turn will negatively affect the state itself.

The third vector is taxes. Officials are not ready to lose revenue from operations with the cryptocurrency. First of all, we are talking about crytpocurrency exchanges, which on their commissions began to earn fabulous incomes. Next on the list are traders, miners and other participants of cryptoeconomics, which due to sometimes frenzied volatility literally gilded before our eyes.

Thus, all the positive features of the cryptocurrency, ensuring its independence and reliability, turn out to be negative for citizens and the state.

At the same time, citizens can't discharge of process of transformation in digital economy. Explaining to a citizen about the risk of investing money in a cryptocurrency due to its volatility or anonymity is an empty matter if a person does not understand how "it works".

Digitalization and the robotization of a number of industries will affect the employment of the population. Given the current trends in raising the retirement age and increasing the life expectancy of citizens, perhaps it's time to think about creating courses, seminars, lectures on retraining and adaptation of the citizens of the generation "X" and "Y". The development of cryptography can not be stopped, it's time to adapt to it.

In general, despite all those risks which see various public authorities in cryptocurrencies to close eyes to their popularity, the demand in the modern companies and wide use as means of accumulation and payment isn't possible any more.

The state forced to accept regulation of this branch, almost staking, as in casino: those who put on the ban remove the risks now, but risk to lose in long, and those who create "legal cryptoparadise" have to understand that if potential risks come true, then the same state should help citizens out of a trouble.

It seems that the state will be able to fully recognize the cryptocurrency only if it can control its operation and conduct of transactions. However, such a condition contradicts the very nature of the crypto currency and can undermine the credibility of the entire cryptocommunity.